Canadian Stocks Are Down On Commodity Weakness -- Canadian Commentary

(RTTNews) - The Canadian stock market is trading modestly to the downside Monday morning. Weak economic data from China over the weekend has investors in a gloomy mood. Investors are also playing it cautious ahead of the Federal Reserve announcement on Thursday.

The majority of the Canadian sectors are trading in the red. The largest losses are among the mining, gold and energy sectors. Commodity prices are struggling this morning, especially crude oil which has dropped back below $45 a barrel.

The majority of the European markets are trading to the downside at the start of the new trading week. Markets in the United States are also under pressure in early trade. The Fed is scheduled to announce its policy decision Thursday afternoon, although analysts remain split regarding whether the central bank will raise interest rates.

The benchmark S&P/TSX Composite Index is down 58.26 points or 0.43 percent at 13,403.21.

On Friday, the index closed down 108.50 points or 0.80 percent, at 13,461.39. The index scaled an intraday high of 13,523.46 and a low of 13,404.63.

The Diversified Metal and Mining Index is weakening by 2.69 percent. HudBay Minerals (HBM.TO) is losing 2.50 percent and Sherritt International (S.TO) is decreasing by 3.88 percent. Lundin Mining (LUN.TO) is declining by 4.29 percent and Capstone Mining (CS.TO) is falling by 3.23 percent. First Quantum Minerals (FM.TO) is also tumbling by 4.13 percent.

The Gold Index is falling by 1.19 percent. Gold prices were flat Monday morning ahead of this week's pivotal Federal Reserve meeting.

Barrick Gold (ABX.TO) is losing 1.90 percent and Yamana Gold (YRI.TO) is declining by 1.44 percent. Royal Gold (RGL.TO) is down 0.39 percent and Goldcorp (G.TO) is dipping by 0.18 percent. B2Gold (BTO.TO) is lower by 5.73 percent and Eldorado Gold (ELD.TO) is falling by 3.04 percent. IAMGOLD (IMG.TO) is also surrendering 1.55 percent.

The Capped Materials Index is also down 1.33 percent. Agnico Eagle Mines (AEM.TO) is losing 1.67 percent and Silver Wheaton (SLW.TO) is declining by 4.80 percent. Potash Corp. of Saskatchewan (POT.TO) is also down 0.21 percent.

The Energy Index is decreasing by 1.29 percent. Crude oil prices were slightly lower Monday morning, after OPEC cut its supply forecast for U.S. producers.

Canadian Oil Sands (COS.TO) is down 1.59 percent and Crescent Point Energy (CPG.TO) is losing 1.45 percent. Suncor Energy (SU.TO) is lower by 1.61 percent and Encana (ECA.TO) is down 1.68 percent. Canadian Natural Resources (CNQ.TO) is declining by 1.77 percent and Cenovus Energy (CVE.TO) is weakening by 2.43 percent. Pacific Exploration & Production (PRE.TO) is sinking by 3.74 percent and Enbridge (ENB.TO) is surrendering 0.64 percent.

The Capped Industrials Index is down 0.48 percent. Finning International (FTT.TO) is decreasing by 0.09 percent and Bombardier (BBD-A.TO) is sinking by 6.35 percent. Canadian Pacific Railway (CP.TO) is falling by 0.22 percent and Canadian National Railway (CNR.TO) is dipping by 0.04 percent.

The Capped Health Care Index is losing 0.50 percent. Valeant Pharmaceuticals International (VRX.TO) is falling by 0.36 percent and Extendicare (EXE.TO) is down 0.88 percent. Concordia Healthcare (CXR.TO) is lower by 0.87 percent.

The Capped Information Technology Index is losing 0.52 percent. Descartes Systems Group (DSG.TO) is falling by 1.11 percent and Constellation Software (CSU.TO) is down 0.37 percent. BlackBerry (BB.TO) is declining by 0.72 percent and Sierra Wireless (SW.TO) is lower by 0.76 percent.

The heavyweight Financial Index is rising by 0.10 percent. National Bank of Canada (NA.TO) is increasing by 0.42 percent and Bank of Montreal (BMO.TO) is gaining 0.35 percent. Royal Bank of Canada (RY.TO) is advancing by 0.10 percent and Bank of Nova Scotia (BNS.TO) is higher by 0.05 percent.

Toronto-Dominion Bank (TD.TO) is down 0.14 percent. Management stated Friday that they are looking into acquisitions in the U.S.

The Capped Telecommunication Services Index is declining by 0.05 percent. TELUS (T.TO) is falling by 0.36 percent and Manitoba Telecom Services (MBT.TO) is down 0.07 percent. Rogers Communication (RCI-A.TO) is losing 0.77 percent.

Fiera Capital Corp. (FSZ.TO) is rising by 0.25 percent. The company announced that John Valentini has been named Executive Vice-President and Chief Financial Officer.

On the economic front, China's industrial production increased at a slower-than-expected pace in August, while retail sales growth exceeded expectations, figures from the National Bureau of Statistics showed Monday.

Industrial production climbed 6.1 percent year-over-year in August, slightly faster than previous month's 6.0 percent rise. Economists had expected a 6.3 percent growth for the month.

Retail sales growth improved to 10.8 percent annually in August from 10.5 percent in July. The expected rate of increase was 10.6 percent.

Eurozone industrial production rose for the first time in three months and exceeded economists' expectations, suggesting that a positive contribution to growth is likely in the third quarter.

Industrial production rose 0.6 percent month-on-month following a 0.3 percent slump in June, which was revised from a 0.4 percent fall. Economists had expected a 0.3 percent gain. The growth was also the biggest since February, when production rose 0.9 percent.

In commodities, crude oil futures for October delivery are down $0.36 or 0.81 percent at $44.27 a barrel.

Natural gas for October is up 0.018 or 0.67 percent at $2.711 per million btu.

Gold futures for December are up $1.10 or 0.10 percent at $1,104.40 an ounce.

Silver for December is down $0.15 or 1.03 percent at $14.355 an ounce.